Record keeping for a 501c3 nonprofit organization is incredibly important. Many startup nonprofits have a hard time keeping up with the paperwork and list of records they must keep by law, and this makes them fall behind in record keeping in general, often costing them their tax exempt status or even the entire organization. Knowing the importance of good record keeping, what's required of you and your options for outside help are all ways in which you can help yourself keep great records of your business venture.

Know Its Importance
Understanding the importance of keeping great 501c3 nonprofit records will help to motivate you to get it done and keep it up-to-date. Without the proper records, for one thing, you are likely to lose both your tax exempt status and your organization in general -- poor record keeping is one of the most common ways organizations get in trouble and go under. It is also important because keeping good records of your business will allow you to perform your charities and services with more accuracy, less trouble and more satisfaction for everyone involved.

What's Required
The first thing to do in the quest for getti
ng a great record-keeping system in place for your organization is to do some research or ask the IRS what records are required in order to keep your tax exempt status. Many states require your incorporation papers, bylaws, tax paperwork for X number of years back, and your letter of acceptance as a tax exempt organization. Other requirements may include payroll information and the minutes from board meetings for the past several years. It is important to find out what you must have so that you know where to start and what to keep in the foreground of your records department.

Hiring Help
If you feel as if it would be too overwhelming or intimidating for you to take on this project by yourself, you're certainly not alone. Even a small nonprofit organization has so much paperwork to keep up with that they get overwhelmed as well. Hiring a professional records keeper or accountant who is skilled in bookkeeping is always an option that is well worth the money spent on their wages. A professional can help you stay organized, find important papers when needed and create an organizational system that even you could keep up with in the future should you choose. Consider hiring help if you feel like you're drowning in paperwork, because it really is that important.